S.B. No. 1678
 
 
 
 
AN ACT
  relating to the events and expenses eligible for, reporting
  requirements concerning disbursements from, and a study by the
  comptroller of the Major Events trust fund and the Events trust
  fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subdivision (4), Subsection (a), Section 5A,
  Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
  Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is
  amended to read as follows:
               (4)  "Event" means a Super Bowl, a National Collegiate
  Athletic Association Final Four tournament game, the National
  Basketball Association All-Star Game, the X Games, the National
  Hockey League All-Star Game, the Major League Baseball All-Star
  Game, a National Collegiate Athletic Association Bowl Championship
  Series game, a World Cup Soccer game, the World Games, a national
  collegiate championship of an amateur sport sanctioned by the
  national governing body of the sport that is recognized by the
  United States Olympic Committee, an Olympic activity, including a
  Junior or Senior activity, training program, or feeder program
  sanctioned by the United States Olympic Committee's Community
  Olympic Development Program, a mixed martial arts championship, the
  Breeders' Cup World Championships, a Formula One automobile race,
  the Academy of Country Music Awards, the National Cutting Horse
  Association Triple Crown, [or] a national political convention of
  the Republican National Committee or the Democratic National
  Committee, or the largest event held each year at a sports
  entertainment venue in this state with a permanent seating
  capacity, including grandstand and premium seating, of not less
  than 125,000.  The term includes any activities related to or
  associated with an event.
         SECTION 2.  Section 5A, Chapter 1507 (S.B. 456), Acts of the
  76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (a-1),
  (b-1), (h), (i), (k), (p), and (w) and adding Subsections (a-2),
  (x), and (y) to read as follows:
         (a-1)  An event not listed [included] in Subsection (a)(4) of
  this section is ineligible [eligible] for funding under this
  section.  A listed event may receive funding under this section only
  if:
               (1)  a site selection organization selects a site
  located in this state for the event to be held one time or, for an
  event scheduled to be held each year for a period of years under an
  event contract, or an event support contract, one time each year for
  the period of years, after considering, through a highly
  competitive selection process, one or more sites that are not
  located in this state;
               (2)  a site selection organization selects a site in
  this state as:
                     (A)  the sole site for the event; or
                     (B)  the sole site for the event in a region
  composed of this state and one or more adjoining states; [and]
               (3)  the event is held not more than one time in any
  year; and
               (4)  the amount of the incremental increase in tax
  receipts determined by the comptroller under Subsection (b) of this
  section equals or exceeds $1 million, provided that for an event
  scheduled to be held each year for a period of years under an event
  contract or event support contract, the incremental increase in tax
  receipts shall be calculated as if the event did not occur in the
  prior year.
         (a-2)  Subsection (a-1)(1) of this section does not apply to
  an event that is the largest event held each year at a sports
  entertainment venue in this state with a permanent seating
  capacity, including grandstand and premium seating, of not less
  than 125,000. If an endorsing municipality or endorsing county
  requests the comptroller to make a determination under Subsection
  (b) of this section for an event described by this subsection, the
  provisions of this section apply to that event as if it satisfied
  the eligibility requirements for an event under Subsection (a-1)(1)
  of this section.
         (b-1)  A request for a determination of the amount of
  incremental increase in tax receipts specified by Subsection (b) of
  this section must be submitted to the comptroller not earlier than
  one year and not later than 45 days [three months] before the date
  the event begins.  The comptroller shall base the determination
  specified by Subsection (b) of this section on information
  submitted by the local organizing committee, endorsing
  municipality, or endorsing county, and must make the determination
  not later than the 30th day after the date the comptroller receives
  the request and related information.
         (h)  The funds in the Major Events trust fund may be used to
  pay the principal of and interest on notes issued by an endorsing
  municipality or endorsing county under Subsection (g) of this
  section and to fulfill obligations of the state or an endorsing
  municipality or endorsing county to a site selection organization
  under a game support contract or event support contract.  Subject to
  Subsection (k) of this section, the[, which] obligations may
  include the payment of costs relating to the preparations necessary
  or desirable for the conduct of the event and the payment of costs
  of conducting the event, including improvements or renovations to
  existing facilities or other facilities and costs of acquisition or
  construction of new facilities or other facilities.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  comptroller to enable the comptroller to fulfill the comptroller's
  duties under this section, including annual audited statements of
  any financial records required by a site selection organization and
  data obtained by the local organizing committee, an endorsing
  municipality, or an endorsing county relating to attendance at the
  event, including an estimate of the number of people expected to
  attend the event who are not residents of this state, and to the
  economic impact of the event.  A local organizing committee,
  endorsing municipality, or endorsing county must provide an annual
  audited financial statement required by the comptroller, if any,
  not later than the end of the fourth month after the date the period
  covered by the financial statement ends.  After the conclusion of an
  event and on the comptroller's request, a local organizing
  committee, endorsing municipality, or endorsing county must
  provide information relating to the event, such as attendance
  figures, including an estimate of the number of attendees at the
  event who are not residents of this state, financial information,
  or other public information held by the local organizing committee,
  endorsing municipality, or endorsing county that the comptroller
  considers necessary.
         (k)  The comptroller may make a disbursement from the Major
  Events trust fund on the prior approval of each contributing
  endorsing municipality or endorsing county for a purpose for which
  a local organizing committee, an endorsing municipality, or an
  endorsing county or the state is obligated under a game support
  contract or event support contract.  If an obligation is incurred
  under a games support contract or event support contract to make a
  structural improvement to the site or to add a fixture to the site
  for purposes of an event and that improvement or fixture is expected
  to derive most of its value in subsequent uses of the site for
  future events, a disbursement from the trust fund made for purposes
  of that obligation is limited to five percent of the cost of the
  improvement or fixture and the remainder of the obligation is not
  eligible for a disbursement from the trust fund, unless the
  improvement or fixture is for a publicly owned facility.  In
  considering whether to make a disbursement from the trust fund, the
  comptroller may not consider a contingency clause in an event
  support contract as relieving a local organizing committee's,
  endorsing municipality's, or endorsing county's obligation to pay a
  cost under the contract.  A disbursement may not be made from the
  trust fund that the comptroller determines would be used for the
  purpose of soliciting the relocation of a professional sports
  franchise located in this state.
         (p)  The comptroller may not undertake any of the
  responsibilities or duties set forth in this section unless:
               (1)  a request is submitted by the municipality or the
  county in which the event will be located;
               (2)  the event meets all the requirements for funding
  under this section, including Subsection (a-1) of this section; and
               (3)  the request is[.  The request must be] accompanied
  by documentation from a site selection organization selecting the
  site for the event.
         (w)  Not later than 10 [18] months after the last day of an
  event eligible for disbursements from the Major Events trust fund
  for costs associated with the event, the comptroller using existing
  resources shall[:
               [(1)]  complete a study in the market area of the event
  on the measurable economic impact directly attributable to the
  preparation for and presentation of the event and related
  activities. The comptroller shall[; and
               [(2)]  post on the comptroller's Internet website:
               (1)  the results of the study conducted under this
  subsection, including any source documentation or other
  information relied on by the comptroller for the study;
               (2)  the amount of incremental increase in tax receipts
  for the event determined under Subsection (b) of this section;
               (3)  the site selection organization documentation
  described in Subsection (p)(3) of this section;
               (4)  any source documentation or information described
  under Subsection (i) of this section that was relied on by the
  comptroller in making the determination of the amount of
  incremental increase in tax receipts under Subsection (b) of this
  section; and
               (5)  documentation verifying that:
                     (A)  a request submitted by a local organizing
  committee, endorsing municipality, or endorsing county under
  Subsection (p) of this section is complete and certified as such by
  the comptroller;
                     (B)  the determination on the amount of
  incremental increases in tax receipts under Subsection (b) of this
  section considered the information submitted by a local organizing
  committee, endorsing municipality, or endorsing county as required
  under Subsection (b-1) of this section; and
                     (C)  each deadline established under this section
  was timely met [Subdivision (1) of this subsection].
         (x)  Subsection (w) of this section does not require
  disclosure of information that is confidential under Chapter 552,
  Government Code, or confidential or privileged under other law.
         (y)  After the conclusion of an event, the comptroller shall
  compare information on the actual attendance figures provided to
  the comptroller under Subsection (i) of this section with the
  estimated attendance numbers used to determine the incremental
  increase in tax receipts under Subsection (b) of this section. If
  the actual attendance figures are significantly lower than the
  estimated attendance numbers, the comptroller may reduce the amount
  of a disbursement for an endorsing entity under the Major Events
  trust fund in proportion to the discrepancy between the actual and
  estimated attendance and in proportion to the amount contributed to
  the fund by the entity. The comptroller by rule shall define
  "significantly lower" for purposes of this subsection and provide
  the manner in which a disbursement may be proportionately reduced.
  This subsection does not affect the remittance of any money
  remaining in the fund in accordance with Subsection (m) of this
  section.
         SECTION 3.  Section 5C, Chapter 1507 (S.B. 456), Acts of the
  76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (a-1),
  (h), (i), and (k) and adding Subsections (b-1), (k-1), (k-2), (r),
  (s), and (t) to read as follows:
         (a-1)  An event is eligible for funding under this section
  only if:
               (1)  a site selection organization selects a site for
  the event located in this state to be held one time or, for an event
  scheduled to be held each year for a period of years under an event
  contract, or an events support contract, one time each year for the
  period of years, after considering, through a highly competitive
  selection process, one or more sites that are not located in this
  state;
               (2)  a site selection organization selects a site in
  this state as:
                     (A)  the sole site for the event; or
                     (B)  the sole site for the event in a region
  composed of this state and one or more adjoining states; and
               (3)  the event is held not more than one time in this
  state or an adjoining state in any year.
         (b-1)  The number of requests for funding under this section
  that may be submitted by an endorsing county or endorsing
  municipality during any 12-month period for an event for which the
  comptroller determines that the total amount of the incremental
  increase in tax receipts under Subsection (b) of this section is
  less than $200,000 is limited to, during any 12-month period, not
  more than 10 events, only three of which may be nonsporting events.
         (h)  The money in the Events trust fund may be used to pay the
  principal of and interest on notes issued by an endorsing
  municipality or endorsing county under Subsection (g) of this
  section and to fulfill obligations of this state or an endorsing
  municipality or endorsing county to a site selection organization
  under an event support contract.  Subject to Subsection (k) of this
  section, the[, which] obligations may include the payment of costs
  relating to the preparations necessary [or desirable] for the
  conduct of the event and the payment of costs of conducting the
  event, including improvements or renovations to existing
  facilities or other facilities and costs of acquisition or
  construction of new facilities or other facilities.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  comptroller to enable the comptroller to fulfill the comptroller's
  duties under this section, including annual audited statements of
  any financial records required by a site selection organization and
  data obtained by the local organizing committee, an endorsing
  municipality, or an endorsing county relating to attendance at the
  event, including an estimate of the number of people expected to
  attend the event who are not residents of this state, and to the
  economic impact of the event.  A local organizing committee,
  endorsing municipality, or endorsing county must provide an annual
  audited financial statement required by the comptroller, if any,
  not later than the end of the fourth month after the date the period
  covered by the financial statement ends.  After the conclusion of an
  event and on the comptroller's request, a local organizing
  committee, endorsing municipality, or endorsing county must
  provide information relating to the event, such as attendance
  figures, including an estimate of the number of people who are not
  residents of this state who attended the event, financial
  information, or other public information held by the local
  organizing committee, endorsing municipality, or endorsing county
  that the comptroller considers necessary.
         (k)  The comptroller may make a disbursement from the Events
  trust fund on the prior approval of each contributing endorsing
  municipality or endorsing county for a purpose for which a local
  organizing committee, an endorsing municipality, or an endorsing
  county or this state is obligated under an event support contract,
  including an obligation to pay costs incurred in the conduct of the
  event and costs incurred in making preparations necessary for the
  event.  If an obligation is incurred under an event support contract
  to make a structural improvement to the site or to add a fixture to
  the site for purposes of an event and that improvement or fixture is
  expected to derive most of its value in subsequent uses of the site
  for future events, a disbursement from the trust fund made for
  purposes of that obligation is limited to five percent of the cost
  of the improvement or fixture and the remainder of the obligation is
  not eligible for a disbursement from the trust fund, unless the
  improvement or fixture is for a publicly owned facility.  In
  considering whether to make a disbursement from the trust fund, the
  comptroller may not consider a contingency clause in an event
  support contract as relieving a local organizing committee's,
  endorsing municipality's, or endorsing county's obligation to pay a
  cost under the contract.
         (k-1)  A disbursement may not be made from the trust fund
  that the comptroller determines would be used for the purpose of:
               (1)  soliciting the relocation of a professional sports
  franchise located in this state;
               (2)  constructing an arena, stadium, or convention
  center; or
               (3)  conducting usual and customary maintenance of a
  facility.
         (k-2)  Subsection (k-1) of this section does not prohibit:
               (1)  a disbursement from the trust fund for the
  construction of temporary structures within an arena, stadium, or
  convention, if those temporary structures are necessary for the
  conduct of the event; or
               (2)  temporary maintenance of a facility that is
  necessary for the preparation for or conduct of the event.
         (r)  The comptroller may adopt a model event support contract
  and make the contract available on the comptroller's Internet
  website.  The adoption by the comptroller of a model event support
  contract under this subsection does not require use of the model
  event support contract for purposes of this section.
         (s)  The comptroller may adopt rules necessary to implement
  this section.
         (t)  After the conclusion of an event, the comptroller shall
  compare information on the actual attendance figures provided to
  the comptroller under Subsection (i) of this section with the
  estimated attendance numbers used to determine the incremental
  increase in tax receipts under Subsection (b) of this section. If
  the actual attendance figures are significantly lower than the
  estimated attendance numbers, the comptroller may reduce the amount
  of a disbursement for an endorsing entity under the Events trust
  fund in proportion to the discrepancy between the actual and
  estimated attendance and in proportion to the amount contributed to
  the fund by the entity. The comptroller by rule shall define
  "significantly lower" for purposes of this subsection and provide
  the manner in which a disbursement may be proportionately reduced.
  This subsection does not affect the remittance of any money
  remaining in the fund in accordance with Subsection (m) of this
  section.
         SECTION 4.  Subsections (r), (s), (t), and (u), Section 5A,
  Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature,
  Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
  Statutes), are repealed.
         SECTION 5.  (a)  The comptroller of public accounts shall
  conduct a study to determine:
               (1)  the economic impact of the events that qualify for
  funding through an events trust fund; and
               (2)  whether the events would likely be held in this
  state in the absence of the incentives provided through the fund.
         (b)  The comptroller of public accounts shall prepare a
  report of the findings from the study conducted under Subsection
  (a) of this section.  Not later than January 1, 2015, the
  comptroller shall electronically file a copy of the report with the
  lieutenant governor, the speaker of the house of representatives,
  and the presiding officer of each standing committee of the senate
  and house of representatives having primary jurisdiction over
  fiscal matters or matters related to tourism or recreation.
         (c)  This section expires September 1, 2015.
         SECTION 6.  The changes in law made by this Act apply only to
  a request submitted to the comptroller of public accounts by an
  endorsing municipality or endorsing county under Section 5A or 5C,
  Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature,
  Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
  Statutes), on or after the effective date of this Act. A request
  submitted under Section 5A or 5C before that date is governed by the
  law in effect on the date the request is submitted, and that law is
  continued in effect for that purpose.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1678 passed the Senate on
  April 25, 2013, by the following vote: Yeas 28, Nays 0; and that
  the Senate concurred in House amendments on May 25, 2013, by the
  following vote: Yeas 20, Nays 8.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1678 passed the House, with
  amendments, on May 20, 2013, by the following vote: Yeas 145,
  Nays 2, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor